Perceptions of a positive
upside explosion this morning, based upon startling positive earnings data from
Apple and Facebook, quickly unraveled as other factors interceded. While Apple stock’s 8% gain propelled the NASDAQ
to a fast start, up over 1%, fortunes reversed rapidly and most indexes are now
negative. Geopolitical tensions over
Ukraine seem to be the main culprit driving investors to the sell side. Hopes for a diplomatic solution to Russian
aggression in that part of the world are fading and armed conflict between
Russia and the fledgling Ukrainian government seems imminent. The US has sent troops to Poland in a show of
force, heightening tensions further. In
what seems trivial amidst the current turmoil, the US durable goods order came
in very strong. The prices of gold and
oil are very volatile this morning.
Positive economic data sent gold down to start but international
tensions have the commodity on the rise.
Data indicating an excess supply of oil caused an initial drop but, once
again, international tension has resulted in gains as the morning has
progressed. Earnings season is in full
swing today and would normally drive stock prices, but investors are turning
attention to Eastern Europe and don’t like what they see. It could be a rocky day.
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